Protecting your business’ vehicles is essential to ensure that you meet legal requirements but also to ensure that you can keep your business running as your vehicles are often the unsung workhorse that you depend on.
Whether you have a single vehicle or a fleet, cars, vans, light or heavy commercial vehicles, there is a range of insurance policies available, so we have explored what options are available below.
The table below gives a quick comparison of the top UK providers for commercial van and vehicle insurance.
| Company | Maximum cover | Courtesy vehicle | Legal cover |
|---|---|---|---|
| Aviva | Not stated | Yes | Yes |
| AIG | Not stated | Not stated | Not stated |
| RSA | Not stated | Yes | Yes |
| AXA | Not stated | Yes | Not stated |
| Direct Line Group | Not stated | Optional | Optional |
| Zurich | £50,000,000 | Not stated | Not stated |
| ACE | Not stated | Not stated | Not stated |
| Allianz | Not stated | Yes | Yes |
| Ageas | Not stated | Yes | Not stated |
| QBE | £20 million | Yes | Not stated |
| LV= | Not stated | Yes | Yes |
| NFU Mutual | £5 million | Yes | Yes |
| Lloyds Banking Group | Not stated | Not stated | Optional |
| Covéa | Not stated | Not stated | Not stated |
| HDI | Not stated | Not stated | Not stated |
| Tokio Marine | Not stated | Not stated | Not stated |
| NIG | £2 million | Not stated | Not stated |
| Churchill | £2 million | Not stated | Optional |
* The facts and figures included here come from each company’s website and were accurate at the time of writing (February 2020) but may have since changed. Also, please keep in mind these may not be apples to apples comparisons as each provider offers different solutions. This guide should be used as a starting off point for more research on your part.
Below we profile each of the companies’ services and features in a bit more detail.
Topics
1. Aviva
Some of the features and benefits of Aviva’s commercial van and vehicle insurance.
- Offers business vehicle and van insurance
- Two products catering for sole traders and companies
- Protects your vehicles for work-related purposes
- Covers a broad range of use and greater protection than domestic use policies
- 24/7 claims helpline and pickup service
- Up to £500 tool cover
- Protected no claim discount
- Replacement van or courtesy car
- Motor legal support
- Passenger and foreign use cover
Aviva is an insurance provider that offers a broad range of insurance products including vehicle cover. Their business vehicle and van insurance are designed for two types of businesses – sole traders where the vehicle registered in the individual’s name, and company vehicle insurance where the vehicles are registered in the company’s name.
Aviva’s business vehicle and van insurance offer comprehensive insurance that includes 24/7 claims helpline and vehicle pickup service. The cover includes passengers which many insurers do not include and use of the vehicle abroad. It also offers protected no claims discount, motor legal support, replacement van and courtesy car with an optional upgrade.
2. AIG
Some of the features and benefits of AIG’s commercial van and vehicle insurance.
- Motor fleet insurance
- Essential third-party cover to comprehensive policies
- Suited to businesses with fleets only
- Tailored insurance policies
- Protection from third party claims
- Medical and vocational rehabilitation
- Professional crisis management
- Targeted risk management support
- Offers a driver profiler tool
- Available direct or through a broker
AIG is an insurance provider offering a wide range of business insurance products as standalone products and combined products that are sold as tailored packages catering for specific sectors. Their product range includes motor fleet insurance designed for businesses that operate fleets.
AIG’s motor fleet insurance is a flexible product that can be tailored to meet your business’ needs with cover that offers a variety of levels with comprehensive cover, third party fire and theft, and third party only cover. Their policies can include professional crisis management, medical and vocational rehabilitation. They also offer risk management support and driver profiler tools to help customers to effectively manage their fleets.
3. RSA
Some of the features and benefits of RSA’s commercial van and vehicle insurance.
- Offers a range of vehicle insurance
- Company vehicle insurance
- Van insurance
- Mini fleet and motor fleet cover
- FleetShield to offer premium cover
- Fleets up to 250 vehicles
- New for old cover
- Use abroad
- Courtesy vehicles
- Tools in transit
RSA is an insurance provider that offers a wide range of business insurance through a network of brokers. Their product range includes several commercial vehicle insurance products which include business car insurance, van insurance, mini fleet and motor fleet.
RSA’s business car insurance and van insurance are designed for businesses with only a few vehicles and for commercial vehicles up to 7.5 tonnes. Mini fleet offers cover for 2 to 15 vehicles and motor fleet covers fleets with over 9 vehicles up to 250. Fleet insurance can include cars, vans, trucks, trailers and forklifts. Motor fleet includes FleetShield which offers premium protection.
4. AXA
Some of the features and benefits of AXA’s commercial van and vehicle insurance.
- Van insurance
- Covers all uses
- Offers comprehensive, third party, fire and theft, or third party only
- Accident recovery
- Roadside repairs
- Uninsured driver promise
- Guaranteed courtesy van
- Foreign travel
- Can offer up to 60% no claims discount
- Offers an online discount
AXA is an insurance provider that offers a wide variety of business insurance products that cater for small to medium businesses including sole traders and the self-employed. They have created tailored insurance solutions that meet the needs of smaller businesses which includes property, contents, liability and van insurance.
AXA’s van insurance offers tiered insurance as they have comprehensive cover, third party, fire and theft, and third party only cover. They also offer tailored van insurance cover for couriers. Their van insurance can include accident recovery, roadside repairs, uninsured driver promise, courtesy van, foreign travel, loss of keys, broken windows/windscreen, wrong fuel cover, personal belongings and medical expenses.
5. Direct Line for Business
Some of the features and benefits of Direct Line for Business’ commercial van and vehicle insurance.
- Van insurance
- Comprehensive cover or third party, fire and theft
- Accidental and malicious damage
- Personal belongings
- Medical expenses
- Personal accident and medical expenses
- Tools cover up to £500
- Offers a range of optional extras
- Up to 9 years no claims discount
- No administration fees
Direct Line for Business is an insurance provider that specialises in small business insurance and they offer a wide range of business insurance which they have tailored to meet the needs of specific professions and industries. Their products include liability insurance, landlord insurance and van insurance.
Direct Line for Business’ van insurance can offer comprehensive cover or third party, fire and theft. Comprehensive cover includes accidental and malicious damage, tools and personal belongings, windscreen damage, uninsured driver promise, personal accident and medical expenses. Optional extras include protected no claims, breakdown cover, replacement vehicle and motor legal protection.
Direct Line for Business website
6. Zurich
Some of the features and benefits of Zurich’s commercial van and vehicle insurance.
- Choice of fleet cover
- Small fleet for 2 to 20 vehicles
- Motor fleet for 21 or more vehicles
- Domestic and international cover
- Covers any driver
- Uninsured losses
- Tailored solutions
- Covers all vehicles
- Works with you to minimise risks
- Available directly from them
Zurich is an insurance provider that specialises in offering a range of life and health-based insurance products for businesses as well as other business cover such as fleet insurance. They provide two levels of cover – small fleet insurance designed for businesses that have fleets of 2 to 20 vehicles, and motor fleet insurance which caters for larger fleets of 21 vehicles and over.
Zurich’s van insurance offers tailored solutions covers domestic and international travel in fleet vehicles. It covers all vehicle types and covers all drivers. They provide comprehensive cover which also includes uninsured losses such as absenteeism, brand damage, penalties and fuel consumption.
7. ACE Insurance
Some of the features and benefits of ACE Insurance’s commercial van and vehicle insurance.
- Van insurance
- Comprehensive cover
- Covers a wide range of professions
- Affordable and reliable van insurance
- Flexible policies
- Provide cover to meet your budget and needs
- Cover can be arranged in a few minutes
- Offers specific motor trade and taxi insurance products
- Will search for cover from an independent panel of insurers
- Claims to offer a first-class service
ACE Insurance offers a range of business insurance products which are designed to meet the needs of smaller businesses with specific cover products and tailored combined packages. Their product range includes several commercial vehicle insurance products such as van insurance, motor trade and taxi insurance.
ACE Insurance’s van insurance offers comprehensive cover to a wide variety of small businesses and professions. It offers a flexible policy that is an affordable and reliable cover for businesses with vans that are looking for a policy that can meet their needs within budget. ACE Insurance is a broker that will search their independent panel of insurers to find cover or you.
8. Allianz
Some of the features and benefits of Allianz’s commercial van and vehicle insurance.
- Offers two types of fleet insurance
- Mini fleet covering 3 to 8 vehicles or up to 15 on renewal
- Motor fleet covering 15 plus vehicles
- Covers a broad range of businesses and professions
- Third party liability
- New for old
- Personal accident and medical expenses
- Personal belongings
- Legal protection
- Will help you reduce costs, save time and minimise risks
Allianz offers a wide range of business insurance products designed to meet the needs of a variety of businesses. They provide two levels of cover for small businesses and larger businesses, both of which include fleet insurance products. Their products are only available through a broker.
Allianz’s mini fleet insurance provides cover for 3 to 8 vehicles or up to 15 vehicles on policy renewal. Motor fleet is designed for businesses with over 15 vehicles. Both fleet insurance products include third-party liability, new for old cover, courtesy vehicles, misfuelling and legal expenses. In addition, motor fleet includes personal accident, medical expenses, personal belongings and replacement locks.
9. Ageas
Some of the features and benefits of Ageas’ commercial van and vehicle insurance.
- Choice of fleet and van insurance
- Help to keep you on the road
- Fleet covering over 3 vehicles
- One combined policy
- Van cover for business use and pleasure
- Vehicles up to 3.5 tonnes on the van insurance
- Cover damage, stolen, accidents and windscreens
- Replacement vehicle cover
- Suitable for small businesses upwards including new start-ups
- Available only through a broker
Ageas is an insurance provider that offers a variety of business insurance products through a network of independent brokers. They offer business insurance to cover all risks and legally required cover including fleet insurance and van insurance.
Ageas’ fleet insurance is available to businesses with more than 3 vehicles that want to combine their insurance into a single policy. Their van insurance is available to small businesses upwards and includes start-up businesses and is available for personal use only on vehicles up to 3.5 tonnes. Their cover offers protection against damage, accidents, theft and windscreen damage and replacement vehicle cover can be included.
10. QBE
Some of the features and benefits of QBE’s commercial van and vehicle insurance.
- Motor fleet insurance
- Offers cross-class packages
- Aims to minimise the disruption to businesses
- They control repair and car hire costs
- Tailored cover
- 24/7 claims helpline
- Can add AA breakdown and Autoglass repair cover
- Offers risk management support
- Available to businesses of all sizes and trades
- International insurance provider
QBE is an international insurance provider that offers a variety of business insurance products including motor fleet insurance. They offer third party only, third party, fire and theft, and comprehensive cover. They offer cover for car fleets, commercial vehicles including cross-class packages, and coach, bus and minibus cover. Their policies are tailored to your needs and you can add extra covers such as AA breakdown and Autoglass repair cover.
QBE offers a collaborative approach to fleet management through their additional services that are included as standard which are supporting you in actively reducing risk and providing you with the latest information on fleet management and health and safety.
11. LV=
Some of the features and benefits of LV=’s commercial van and vehicle insurance.
- Van insurance
- Designed for small business or personal use
- Covers up to 7.5-tonne vehicles
- Suitable for tippers, refrigerated vehicles and ice-cream vans
- New van replacement
- Personal accident
- Personal effects
- Replacement locks
- Courtesy vehicle
- Available only through a broker
LV= is an insurance provider that offers a variety of business insurance that includes van insurance that is designed to meet the needs of small businesses or those that have a van for personal use. They offer three levels of cover – comprehensive, third party, fire and theft, and third party only.
LV=’s van insurance is suitable to a wide range of businesses with vehicles up to 7.5 tonnes, such as tippers, refrigerated vehicles and ice-cream vans. Their cover varies but can include new van replacement, courtesy van, legal expenses, personal accident, personal belongings, replacement locks, windscreen and cover some travel abroad.
12. NFU Mutual
Some of the features and benefits of NFU Mutual’s commercial van and vehicle insurance.
- Commercial vehicle insurance
- Suitable for light good vehicles, large HGVs and motor fleet
- Truck insurance
- Van insurance
- Fleet insurance
- Includes tools in transit
- Courtesy vehicles
- Legal expenses
- 24-hour claim line
- European travel cover
NFU Mutual is an insurance provider is run by its member and offers a variety of business insurance products that are designed for smaller businesses. They offer a range of tailored business insurance packages which includes commercial vehicle insurance such as truck insurance, van insurance and fleet insurance.
NFU Mutual offers a variety of commercial vehicle cover as third party, fire and theft and third party only cover. Their cover can include tools in transit, courtesy vehicles, new for old on vehicles under 12 months, trailer cover, legal expenses and advice. They offer a 24-hour claim line and a 24-hour emergency helpline when diving in Europe.
13. Lloyds Bank
Some of the features and benefits of Lloyds Bank’s commercial van and vehicle insurance.
- Van and fleet insurance
- Choice of comprehensive, third party, fire and theft, and third party only
- Tailored policies
- Fleet cover for three or more vehicles
- Van cover includes social, domestic and pleasure as well as business
- Can add legal protection
- Extra cover for tools and van contents available
- Personal accident, medical expenses and personal belongings are included
- 24/7 emergency claims helpline
- Insurance provided through a panel of insurers
Lloyds Bank is a financial provider that offers business insurance in partnership with Arthur J. Gallagher insurance, together they offer a variety of business insurance which includes commercial vehicles under either van insurance or fleet insurance.
Lloyd’s fleet insurance covers fleets of three or more vehicles and they can tailor the cover to meet your needs. Their van insurance not only offers business use but also social, domestic and pleasure cover. It includes personal accident, medical expenses and personal belongings and you can tailor the cover by adding other covers such as legal protection, tools and van contents.
14. Covea
Some of the features and benefits of Covea’s commercial van and vehicle insurance.
- Motor fleet insurance
- Cover for 3 to 25 vehicles
- Includes cars and small commercial vehicles
- Weight limit of 7.5 tonnes
- Choice of comprehensive and third party, fire and theft
- 90 days overseas cover per year
- Personal accident and medical expenses
- Includes replacement locks, misfuelling and personal effects
- New vehicle replacement
- 24/7 claims helpline
Covea offers a range of business insurance products that are sold through a network of independent brokers or purchased directly through their online portal. They specialise in providing insurance packages that are tailored to the needs of specific businesses which includes motor fleet insurance.
Covea’s motor fleet insurance provides cover for 3 to 25 cars and small commercial vehicles that weigh up to 7.5 tonnes. They offer a choice of comprehensive insurance, third party, fire and theft and special vehicle third party only. They can offer cover that includes 90 days oversea cover, personal accident, medical expenses, replacement locks, misfuelling, personal belongings and new vehicle replacement.
15. HDI
Some of the features and benefits of HDI’s commercial van and vehicle insurance.
- Motor fleet insurance
- Designed to help reduce fleet insurance costs and running costs
- Target businesses with more than 250 vehicles
- Covers cars, vans, HGVs, coaches and specialist vehicles
- Uses vehicle telematics to improve driver behaviour
- Risk management programme
- Claims management service to reduce indemnity spend
- Driver education programme
- 24/7 claims helpline
- International insurance provider
HDI is an international insurance provider that offers a wide range of specialist insurance products that are tailored to meet the needs of targeted businesses. Their insurance is designed for larger businesses which include motor fleet insurance that has been created for businesses with over 250 vehicles.
HDI’s motor fleet insurance is different from most insurance products as they have designed it to assist fleet owners to reduce risks and fleet running costs. They utilise vehicle telematics to track driver behaviour and vehicle patterns so that their use can be monitored and track improvements. They use driver education training using eLearning and psychometric profiling to improve driving skills.
16. Tokio Marine
Some of the features and benefits of Tokio Marine’s commercial van and vehicle insurance.
- A diverse range of motor insurance
- Niche and specialist products
- Specialise in less commoditised and non-standard areas
- Includes both physical damage and third party liability
- Covers a broad range of vehicle types
- Light commercial vehicles
- Heavy commercial vehicles
- Contractors plant and equipment
- Available through a range of brokers
- International insurance provider
Tokio Marine is an international insurance provider that offers a range of business insurance products that can be purchased as a standalone cover or in combined packages tailored to certain businesses and industries. Their range includes a flexible motor insurance product.
Tokio Marine’s motor insurance is a tailored product that can cater for a diverse range of motor insurance needs and includes niche and specialist products. They particularly focus on less commoditised and non-standard areas of motor insurance. They provide cover for a variety of vehicles including light and heavy commercial vehicles, cars, contractors plant and equipment.
17. NIG
Some of the features and benefits of NIG’s commercial van and vehicle insurance.
- Commercial vehicle insurance
- Single vehicle contract only
- Named driver only
- Comprehensive or third party, fire and theft cover
- Vehicles up to 3.5 tonnes
- Covers the carriage of the insured’s own goods
- Maximum vehicle value of £30,000
- Includes third party compensation for injury and damage
- Legal expenses
- Windscreen cover
NIG is an insurance provider that offers a wide range of business insurance that is tailored to meet the needs of specific businesses and professions. Their insurance range includes commercial vehicle insurance that is designed for businesses with only a single vehicle to insure.
NIG’s commercial vehicle insurance is for named drivers only and covers vehicles for comprehensive or third party, fire and theft. The cover is available for vehicles up to 3.5 tonnes that have a maximum value of £30,000. The cover includes carriage of the insured’s own goods only and will cover third party compensation claims.
18. Churchill
Some of the features and benefits of Churchill’s commercial van and vehicle insurance.
- Van insurance
- Choice of comprehensive or third party, fire and theft
- 24-hour accident recovery
- Medical expenses
- Windscreen cover
- No claims discount
- Option to include legal expenses, vehicle replacement and key replacement
- Can also include tools in transit
- RAC breakdown optional cover
- Provided in partnership
Churchill is an insurance provider that offers a few business insurance products which include public liability with a variety of extras, landlord insurance and van insurance. Their van insurance is provided in partnership with Brightside Insurance Services Ltd who can offer cover from a variety of insurers. Their van insurance is designed for businesses that are wanting to insure a single vehicle.
Churchill’s van insurance is available as either comprehensive or third party, fire and theft cover. The cover varies but comprehensive cover includes theft, damage and third-party claims. They offer optional extras that include legal expenses, vehicle replacement, key replacement, tools in transit and RAC breakdown protection.
Common Questions
What is van insurance?
Van insurance is a type of vehicle insurance that works in a similar way to car insurance. It covers the cost of any damage or losses, including damage to other people’s property while driving.
Types of van insurance include:
Commercial insurance, for business and work purposes
Private insurance, for social and domestic use.
Does van insurance have to be commercial?
No, if you don’t use your van for work-related use, you have the option of choosing a private van insurance policy. This type of insurance is for drivers who only use their van for recreational, social or domestic purposes.
For instance, visiting family, going shopping, carrying sports equipment that won’t fit in your car, and going on camping trips – basically anything that isn’t business.
If this is what you need, you will be happy to know that social van insurance is usually cheaper than the commercial cover.
Is commercial van insurance more expensive?
This depends entirely on your type of commercial use, additions to your policy (like legal cover, breakdown cover, third party cover), the type of van you drive, your location and your driving history.
Is social van insurance cheaper than commercial? Usually, yes.
You’re probably wondering, how much does van insurance cost?
Standard ‘social and private use only’ insurance costs about £572 per year on average. In contrast, own goods insurance policies (a specific type of commercial insurance) are roughly £565 on average.
On the other hand, haulage cover is, on average, £1464 annually, and carriage of goods for hire and reward policies come to about £1515 yearly.
Is insurance on a van cheaper than on a car?
No, van insurance premiums are higher than car insurance, mostly due to the relative size and weight of a van.
Compared to cars, vans have larger engines and storage capacities. They are also more commonly used for commercial reasons or to carry valuable cargo, which will also push the price up.
How do I lower my van insurance?
Van insurance fees can become relatively expensive, especially if you transport commercial cargo.
Here are a few things you can do if you want to get cheaper van insurance and save money:
Improve your van’s security: Install anti-theft devices, park your van in a garage at night, and don’t store valuables inside the van. Ensure that you make the insurer aware of this.
Increase your excess: You can lower your monthly premiums by offering to pay a higher excess as long as you are confident that you can afford to pay it in the event of an accident.
Add another van to your policy: If you have more than one van, it’s often cheaper to insure them together instead of separately.
Compare van insurance quotes: If you are looking for cheap van insurance quotes, it’s in your best interest to shop around. Insurers are known to reserve the best prices for new clients, so if you renew your van insurance policy with the same provider, you might miss out on a better price.
Take a look at our useful van insurance comparison of the 18 Cheapest Commercial Van Insurance Companies in the UK to find a third-party fire and theft or comprehensive van insurance quote that suits your business needs.
Does business van insurance cover personal use?
Yes. Although commercial insurance is intended for work and business vans, personal use will also be covered – social use is included as a standard at no extra cost.
Take note that it doesn’t work the other way round. If you have personal cover, any business use of your vehicle won’t be covered by insurance.
Do you pay VAT on van insurance?
In the UK, insurance premiums aren’t subject to added VAT on business and private van policies. However, you are still subject to tax on your insurance, which is called Insurance Premium Tax (IPT).
The IPT rate is lower than the VAT rate. Standard IPT is 12%. As opposed to VAT, insurance premium tax can’t be recovered.
What is Own Goods insurance?
If you use your van to carry equipment, tools or goods for work, own goods insurance (or carriage of own goods) is the type of cover you would need – for example, couriers, taxi drivers and furniture removers.
This type of insurance is especially suitable for drivers who make multiple deliveries daily to different locations. It’s a legal requirement for you to have this kind of insurance policy if you are in the line of work where you carry other people’s goods in exchange for money.
It’s essential that van insurance providers know exactly what is being carried in your van to ensure that you are covered fully and to avoid any legal costs.
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